Investors will turn their attention to the release of a report on US non-farm payrolls and the jobless rate on Friday to gauge the health of the world's biggest economy.
The US probably added 195,000 jobs in December, compared to 203,000 in November, economists predict.
The unemployment rate is expected to hold at 7% in December.
The data comes after the Federal Reserve last month announced it would begin scaling back monthly bond purchases by $10bn to $75bn.
The central bank also said it would gradually introduce further reductions to monetary stimulus, economic data pointed to ongoing improvement in the economy and labour market.
Markets will be watching tomorrow's jobs report to determine whether the Fed might announce another cut to quantitative easing at its meeting this month.
"We need to see a figure above 200,000 for markets to feel comfortable that the Fed made the right call," said Ishaq Siddiqi, Market Strategist at ETX Capital.
"If however, the reading is disappointingly poor, many will start to scrutinise the Fed's actions and would look to Yellen to beef up forward guidance if the Fed still wants to maintain its credibility," he said of the central bank's incoming Chairman Janet Yellen.
Ahead of the jobs report tomorrow, today's data showed initial jobless claims fell to 330,000 in the week to January 4th from 345,000 a week earlier, smashing expectations for 335,000.
Yesterday, APD jobs data also beat forecasts with employers adding 238,000 jobs in December, compared to 229,000 in November and the consensus estimate of 200,000.
In the UK tomorrow will be the release of industrial and manufacturing data. Industrial output may have risen by 2.8% year-on-year in November from an increase of 3.2% in October, according to forecasts. Manufacturing output is tipped to jump by 3.2% in November, up from a 2.7% climb the month before.
Friday January 10th
INTERIM DIVIDEND PAYMENT DATE
Atkins (WS), Babcock International Group, Cable & Wireless Communications, Caffyns, Creston, Cropper (James), Daisy Group, Electrocomponents, Intermediate Capital Group, JD Sports Fashion, Marks & Spencer Group, Montanaro European Smaller Companies Trust, Northern 2 VCT, Northern 3 VCT, Northgate, Severn Trent, Shanks Group, Telford Homes, Whitbread, Worldwide Healthcare Trust
QUARTERLY PAYMENT DATE
Schlumberger Ltd., XP Power Ltd. (DI)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
GDP (2nd release) (EU) (10:00)
Non-Farm Payrolls (US) (13:30)
Unemployment Rate (US) (13:30)
Wholesales Inventories (US) (15:00)
Queenco Leisure International Ltd. GDR (Reg S), Unicorn AIM VCT
Hilton Food Group, XP Power Ltd. (DI)
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Industrial Production (09:30)
Manufacturing Production (09:30)
FINAL DIVIDEND PAYMENT DATE
Associated British Foods, Debenhams, Netcall, Waterman Group